With the output value of the global semiconductor industry expected to decline by more than 10% this year, the market was once Mired in uncertainty. However, semiconductor manufacturers are optimistic about the effective destocking of supply chains, which is expected to bring a healthy recovery next year. In the complex situation of interweaving various factors, the semiconductor industry has shown a trend of gradually solving the inventory problem and ushering in a good turnaround.

After experiencing the prosperity brought by the epidemic, the semiconductor industry has ushered in the adjustment pressure of repeated orders and excessive inventory in the supply chain. The negative growth of global semiconductor output value is estimated to be more than 10%, and market demand in areas such as automotive and electricity continues to be sluggish. However, TSMC observed some early signs that demand in PC and smartphone end markets remained relatively stable, offering a glimmer of hope for the semiconductor industry.

TSMC said that customers continue to be cautious in effectively controlling inventory and inventory digestion will extend into the fourth quarter. Supply chain inventories are expected to continue to reduce to a healthier level, laying the foundation for good development next year, so that 2024 operating conditions are expected to achieve healthy growth.

Many semiconductor manufacturers agree that the inventory problem will be gradually lifted next year, and the recovery of demand will become a key factor affecting next year's performance. However, factors such as geopolitics and high interest rates are still major variables that could have some impact on the industry.

Panel driver IC factory Tianyu said that customer inventory has been basically removed, and the future business prospects have seen some light. The original phase of the sensor chip factory also pointed out that this year's operations were affected by supply chain inventory adjustments, but next year is expected to return to a relatively normal level.

With computer shipments expected to pick up, Netcom chip maker Realtek and touch chip maker Ilongdian expressed optimism about their performance next year. According to the estimates of the International Institute of Obstetrics and Engineering Research, the global semiconductor output value next year is expected to increase by more than 10% compared with this year.

On the whole, the semiconductor industry has made some progress in coping with the inventory problem, and the market prospects for next year are also showing a positive trend. Major manufacturers through careful inventory management, gradually achieve effective inventory removal, for next year's business growth to create favorable conditions. However, it is still necessary to be alert to the potential impact of geopolitical and macroeconomic variables on the industry in order to maintain the ability to respond flexibly to the market. It is hoped that with the joint efforts of all parties, the semiconductor industry can usher in a more prosperous development next year.